Paying off the Mortgage

[Pura Vida]

The Average Length of Car Loan thread trickled into mortgage payment comments, which got me thinking about paying off the home. I can’t wait.

 

Who’s done it and exactly how good does it feel?

[mexitucky]

To be able to give banks the big digit would be AWESOME!!!

[TAC]

Mine is paid off. I'd like to say it felt great but I had it planned to be paid off right as My oldest headed to college.

[mexitucky]

The Average Length of Car Loan thread trickled into mortgage payment comments, which got me thinking about paying off the home. I can’t wait.

 

Who’s done it and exactly how good does it feel?

 

Also, I'm guessing that you took your name after a trip to Costa Rica?

[Pura Vida]

Mine is paid off. I'd like to say it felt great but I had it planned to be paid off right as My oldest headed to college.

 

Sooo funny –but very nice planning on your part.

 

In theory we should all be able to reap the benefits at least for awhile, but life indeed happens.

[coldweatherfan]

Only debt MrsC and I have is our Florida house.

 

We're going to sell the one here. That will give us enough to pay off the Florida house and do the updates we want to do to it. Should have about $50k left over.

 

Of course, once we sell this one, I'm a full time Floridian.

[HammerTime]

We will have ours paid of in about 8 years at this current rate. I'm sure that will be a great feeling. Problem is we will likely move before then.

[Randy Parker]

Paid ours off last July, knocking out a 15 year mortgage in 7 years and 3 months.

 

One of the most satisfying feelings in the world, behind only getting a like from Clizzy and insulting Getslow.

[Jumper_Dad]

We started bi-weekly payments several years ago...should end up saving about 7 years on ours with the small amount we added to it each payment.

[TAC]

Sooo funny –but very nice planning on your part.

 

In theory we should all be able to reap the benefits at least for awhile, but life indeed happens.

 

Bought when rates were 9% so had a variable rate. Locked in on a 15 year when they dropped. Did it again to a 10 year loan after a few years of that. All time barley increasing my payment. Figured I'd be around 55, no house payment, 2 kids through college. I think that may give me some pretty good options in 3 more years. I just have to survive the next few years at work. It's getting harder to do.

[Voice of Reason]

Do everything in your power to avoid a 30 year mortgage. Try to get into a 15 year mortgage if there is any way you can swing it in your budget.

 

As for paying it off, the shorter the years left to pay the less sense it makes to pay it off. Mortgage amortization means you pay proportionally higher interest costs in the early years of the mortgage. In the later years you are paying primarily principal which means you are getting cheap money at that point. I understand the great comfort in having the mortgage paid off. However, if you feel like you can earn a decent return by investing your money, you are probably better off financially investing cash then paying off the mortgage with 5 or 6 years left to go

[Clyde]

To be able to give banks the big digit would be AWESOME!!!

 

You do know that had the bank not taken a risk in giving you a big loan that you would still be renting, correct?

[Pura Vida]

Also, I'm guessing that you took your name after a trip to Costa Rica?

 

Never actually been there but did take the name from some awesome Costa Rican friends. I love it!

[ggclfan]

Paid mine off many years ago and while feeling good, it is more a feeling of relief...a weight off your shoulders...

[mexitucky]

You do know that had the bank not taken a risk in giving you a big loan that you would still be renting, correct?

 

It is the chicken and the egg. What causes what? Banks lend money so builders charge more and people can resell for more. Just like would the medical industry be able to charge so much without insurance company contracts? No, bc they would have to charge to market. People access more funds and costs are able to go up to increase margins.